The Black Schist nickel-copper project being developed by Metals One (MET1 ) in Finland has been recognised by the European Union for its positive attributes, including its alignment with the objectives of the EU Critical Raw Materials Act and its potential to contribute to the EU's security of supply of strategic raw materials.
The EU also acknowledged the benefits of commercially established bio-heap leaching technology at the nearby Terrafame mine, Black Schist’s access to existing infrastructure and the quality of the project's environmental and social planning, including the Environmental and Social Roadmap prepared by AFRY, an international engineering and environmental consultancy.
The assessment also concluded that the project remains at an early stage of development and that further work is required to substantiate its technical and economic feasibility, advance environmental and permitting activities, and establish financing and offtake arrangements.
At this stage, therefore, the project has not been granted Strategic Project designation in the Commission's current round under the EU Critical Raw Materials Act.
"Though disappointing that Strategic Project designation has not been granted, we are encouraged by the positive acknowledgements within the assessment, particularly regarding its technical potential and the quality of the environmental planning undertaken to date,” said Daniel Maling, managing director of Metals One.
"The company's near-term focus remains the significant opportunity in South Africa and advancing and restarting the Barbrook acquisition as part of building a vertically integrated gold business."
View from Vox
The Black Schist project is now considered non-core to Metals One's gold and uranium focused portfolio and as such the board is reviewing its options with regard to the project, taking into consideration the further work required to advance it, the short-to-mid-term outlook for nickel prices, and its position within the company's wider portfolio. Given the progress on the gold and uranium lately, it won’t be surprising if Black Schist drops further down the company’s priority list. On the other hand, if for any reason the nickel price surges, it’s there, ready and waiting.